In addition to repeating structures noted on December 24, 2022, the Dow 1-hour futures chart developed between November 10, 2022 at 6:00 a.m. and December 13, 2022 at 8:00 a.m. is in an ascending broadening wedge pattern similar to the NASDAQ 100 index that was developed between February 11, 2020 at 10:00 a.m. and February 19, 2020 at 7:00 p.m. Both structural chart patterns are similar to the engrbytrade rising Eight Point Trading ModelTM shown below. Since this structure is relatively rare, additional data will be needed to ensure the 2022/2023 decline continues.
Significant futures trader’s position spreading discussed on December 18, 2022 occurred five times since June 2007, as shown in the table below. Three out of four accumulation dates were followed by a decline in the market.
Since 2017, extreme peaks in the CBOE Options Equity Put/Call Ratio discussed on December 23, 2022 have had a very high correlation with market lows and were followed by a move upward.
Until the ascending broadening wedge, and futures trader’s positions can be confirmed with additional data, the assumption at this point is a move upward based on the Put/Call Ratio correlation.
